Colorado Contracts and Regulations Final Exam
Questions & Verified Answers /Latest 2025
1. It is the obligation of the _________ to disclose a buyer's financial ability to purchase a home?
Buyer agent
2. After the foreclosure sale, the trustor or mortgagor who wishes to reclaim their residential
property may do so in Colorado within what time frame?: owners may not redeem after the
foreclosure sale
3. An INCORRECT statement concerning brokers generating contract forms by use of a
computer is: Blank spaces in the form may be filled in prior to negotiations between the principal
parties of the transaction
4. The MAXIMUM time allotted for a foreclosure sale through the Public
Trustee's office after notice of election to foreclose has been publicized is: 125
5. The following statement is True.: Rule F applies to Real Estate Commission approved contracts
6. An unlicensed assistant may: Fill in the blanks of a form if the broker provides all the information
7. When a homeowners' association changes mangers/brokers: All records must be returned to the
association without charge for copies
8. The listing broker must deposit earnest money in an appropriate trust account: Within 3
business days after notice of acceptance of an offer
9. In the listing form,: the seller can decide NOT to provide a Seller's Property Disclosure to the buyer
10. Mediation fees are: Negotiable
11. The Commission Approved Deed of Trust (s): One is due on sale, one is assumable by credit
worthy buyer and one is freely assumable
12. The following answer regarding seller liability is False.: A seller can be vicariously liable for any
actions of the listing agent if the seller has signed an Exclusive Right- to- Sell Contract.
13. If a broker receives interest in their trust accounts they could do all of the following except:
use the money for covering expenses.
14. Real estate agents in Colorado are allowed to help buyers and sellers with contracts because:
of the court case "Conway-Bogue Realty Inv. Co. vs. Denver Bar Ass'n".
15. The major difference between the Colorado Fair Housing Laws and the Federal Fair Housing
Act is: Colorado applies to both commercial and residential whereas federal only applies to
residential.
16. If a broker acts as a transaction-broker which of the following is NOT true?: The broker must
keep all information regarding the transaction confidential, no matter what.
17. When must a seller give possession to a buyer?
At the time stated in the purchase contract.
18. A buyer who has signed a buyer broker contract may do all of the following except: The
buyer may have the lender pay the broker's commission
1/5
, 19. If a married couple sign a residential sales contract and do not choose joint tenancy or
tenancy in common: the couple will be purchasing as tenants in common if no decision is made.
20. If the buyer is assuming the seller's present loan and if the actual loan amount is found to be
less than the stated amount in the contract which causes the amount of cash required from
the buyer at closing to be increased by more than the amount inserted in the contract:
the buyer may terminate the contract (voidable) if the down payment increases more than the
amount inserted in the assumption paragraph.
21. The Real Estate Commission's E&O Insurance has a minimum coverage of:
$100,000 per claim and $300,000 annual aggregate
22. Colorado Real Estate Commission broker license law was passed to: Protect the people of
Colorado.
23. What law requires a potential buyer to contact law enforcement officials for further
information if the presence of a registered sex offender is a concern to the buyer?
Megan's Law
24. A broker shall provide a "High level of supervision" for:
Licensed persons with less than two years’ experience
25. A Licensee Buy-Out Addendum includes all of the following statements EXCEPT: Is binding
for all parties whether the licensee plans to keep the property as an investment or not.
26. A broker cannot be accused of abandoning a buyer in which circumstance: The buyer selects
another broker to consummate the transaction
27. A landlord may refuse to accommodate a known alcoholic with a history of one of the
following without incurring a civil rights violation: The alcoholic exhibits disruptive and abusive
or dangerous behavior
28. The Contract to Buy and Sell real estate has a provision if agreed upon allowing for
signatures to be evidenced by facsimile. Documents with original signatures: Shall be
provided upon request of any party.
29. The wording in the inspection provision of the buy/sell contract allows the buyer to
terminate the contract: if the physical condition of the property or inclusions is unsatisfactory in the
buyer's subjective discretion
30. In addition to Federal law, Colorado legislature amended CADA in 2008 and added as a
protected class: Gender identity Sexual orientation
31. The MINIMUM time allotted for an agricultural property, through the Public Trustee's office
after filing of the notice of election and demand (NED) to foreclose is:: 215 days
32. A Licensee Buy-Out Addendum to the Contract to Buy and Sell Real Estate is required when
a
licensee enters into a contract to purchase a property in all the following circumstances
EXCEPT: Solely for personal use or future resale
33. A mortgage company offers the broker $100.00 for placement of a loan.
This fee: Is allowable if broker fully informs any party with whom he has established a brokerage
relationship, or worked with as a customer, and obtains written consent of such party
34. Based on the Colorado Statute of Frauds, which lease must be in writing?
Two-year lease for commercial space
2/5
Questions & Verified Answers /Latest 2025
1. It is the obligation of the _________ to disclose a buyer's financial ability to purchase a home?
Buyer agent
2. After the foreclosure sale, the trustor or mortgagor who wishes to reclaim their residential
property may do so in Colorado within what time frame?: owners may not redeem after the
foreclosure sale
3. An INCORRECT statement concerning brokers generating contract forms by use of a
computer is: Blank spaces in the form may be filled in prior to negotiations between the principal
parties of the transaction
4. The MAXIMUM time allotted for a foreclosure sale through the Public
Trustee's office after notice of election to foreclose has been publicized is: 125
5. The following statement is True.: Rule F applies to Real Estate Commission approved contracts
6. An unlicensed assistant may: Fill in the blanks of a form if the broker provides all the information
7. When a homeowners' association changes mangers/brokers: All records must be returned to the
association without charge for copies
8. The listing broker must deposit earnest money in an appropriate trust account: Within 3
business days after notice of acceptance of an offer
9. In the listing form,: the seller can decide NOT to provide a Seller's Property Disclosure to the buyer
10. Mediation fees are: Negotiable
11. The Commission Approved Deed of Trust (s): One is due on sale, one is assumable by credit
worthy buyer and one is freely assumable
12. The following answer regarding seller liability is False.: A seller can be vicariously liable for any
actions of the listing agent if the seller has signed an Exclusive Right- to- Sell Contract.
13. If a broker receives interest in their trust accounts they could do all of the following except:
use the money for covering expenses.
14. Real estate agents in Colorado are allowed to help buyers and sellers with contracts because:
of the court case "Conway-Bogue Realty Inv. Co. vs. Denver Bar Ass'n".
15. The major difference between the Colorado Fair Housing Laws and the Federal Fair Housing
Act is: Colorado applies to both commercial and residential whereas federal only applies to
residential.
16. If a broker acts as a transaction-broker which of the following is NOT true?: The broker must
keep all information regarding the transaction confidential, no matter what.
17. When must a seller give possession to a buyer?
At the time stated in the purchase contract.
18. A buyer who has signed a buyer broker contract may do all of the following except: The
buyer may have the lender pay the broker's commission
1/5
, 19. If a married couple sign a residential sales contract and do not choose joint tenancy or
tenancy in common: the couple will be purchasing as tenants in common if no decision is made.
20. If the buyer is assuming the seller's present loan and if the actual loan amount is found to be
less than the stated amount in the contract which causes the amount of cash required from
the buyer at closing to be increased by more than the amount inserted in the contract:
the buyer may terminate the contract (voidable) if the down payment increases more than the
amount inserted in the assumption paragraph.
21. The Real Estate Commission's E&O Insurance has a minimum coverage of:
$100,000 per claim and $300,000 annual aggregate
22. Colorado Real Estate Commission broker license law was passed to: Protect the people of
Colorado.
23. What law requires a potential buyer to contact law enforcement officials for further
information if the presence of a registered sex offender is a concern to the buyer?
Megan's Law
24. A broker shall provide a "High level of supervision" for:
Licensed persons with less than two years’ experience
25. A Licensee Buy-Out Addendum includes all of the following statements EXCEPT: Is binding
for all parties whether the licensee plans to keep the property as an investment or not.
26. A broker cannot be accused of abandoning a buyer in which circumstance: The buyer selects
another broker to consummate the transaction
27. A landlord may refuse to accommodate a known alcoholic with a history of one of the
following without incurring a civil rights violation: The alcoholic exhibits disruptive and abusive
or dangerous behavior
28. The Contract to Buy and Sell real estate has a provision if agreed upon allowing for
signatures to be evidenced by facsimile. Documents with original signatures: Shall be
provided upon request of any party.
29. The wording in the inspection provision of the buy/sell contract allows the buyer to
terminate the contract: if the physical condition of the property or inclusions is unsatisfactory in the
buyer's subjective discretion
30. In addition to Federal law, Colorado legislature amended CADA in 2008 and added as a
protected class: Gender identity Sexual orientation
31. The MINIMUM time allotted for an agricultural property, through the Public Trustee's office
after filing of the notice of election and demand (NED) to foreclose is:: 215 days
32. A Licensee Buy-Out Addendum to the Contract to Buy and Sell Real Estate is required when
a
licensee enters into a contract to purchase a property in all the following circumstances
EXCEPT: Solely for personal use or future resale
33. A mortgage company offers the broker $100.00 for placement of a loan.
This fee: Is allowable if broker fully informs any party with whom he has established a brokerage
relationship, or worked with as a customer, and obtains written consent of such party
34. Based on the Colorado Statute of Frauds, which lease must be in writing?
Two-year lease for commercial space
2/5
